This Little Piggy Was Subsidized, But Now He Goes to Market
Newsweek has a great piece up on European farmers’ newfound embrace of the free market. Why the dramatic shift from their earlier support of subsidies? I guess most EU farmers–though not all–finally herd that subsidies and protectionism don’t work.
Not all that long ago, it was hard to use “European farmers” and “markets” in a single sentence, unless perhaps you included the words “dumping” or “distorted.” Now, thanks to the global surge in the price of food and farm products (buoyed by a new emerging-market middle class), plus a series of important reforms to Europe’s 50-year-old subsidy system, market forces that haven’t been felt in ages are stirring in the continent’s fields, barns and meadows.
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Thanks to a new crop of muckraking European NGOs, more and more EU voters are also starting to see through the shroud of myth surrounding agricultural aid. Transparency groups like UK-based Farmsubsidy.org have dug up lists of subsidy recipients, showing that the biggest profiteers are actually corporate and aristocratic landowners such as Nestlé, Unilever, and the queen of England. In a sign of the changing public mood, Dutch EU Agriculture Minister Cees Veerman barely escaped having to resign in 2005 after his undisclosed subsidy income showed up on the list. New figures also show that 80 percent of the aid goes to the largest 20 percent of farms, exposing as a sham the argument that the system is needed to support small, traditional farmers. A fresh wave of outrage will likely come in 2009, when transparency holdouts Germany and France will be forced to finally publish their lists, thanks to a new directive from Brussels.
Though EU policies are hardly perfect, the Bush administration could learn a thing or two about the free market from Europe–which says as much about how terrible Bush is as it does about how far Europe has come.
